3 Lessons Employers Can Learn From FedEx Settlements

By Vin Gurrieri (June 16, 2016, 10:48 PM EDT) -- The news on Wednesday that FedEx will be shelling out $240 million to settle claims from delivery drivers in 20 states who said they were incorrectly classified as independent contractors could serve as a cautionary tale for employers in their own classification and payroll systems.

FedEx Ground Package System Inc. had faced and tried to fight for years accusations that it flouted various state laws by deducting company business expenses from their pay and had engaged in unjust enrichment by virtue of classifying the workers as independent contractors, according to attorneys representing the workers.

The massive settlement was just the latest...

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